Los Angeles alternative asset management firm Ares Management LP (NYSE: ARES) aims to diversify services by adding Kayne Anderson Capital Advisors LP in a $2.5 billion deal.

Kayne, founded in 1984 and also based in Los Angeles, has about 110 employees across eight U.S. offices holding $26 billion under management. The target focuses on energy infrastructure, real estate, middle market credit and growth private equity. The combined company will be called Ares Kayne Management LP and will have nearly $113 billion under management.

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